July hogs failed to find additional support early on Friday and closed lower, after first trading up highest level since April 26th. While a jump in pork values and a rally in rib prices helped to provide underlying support, ideas that the futures rally has again lifted the premium to the cash market too high plus indications that packer margins are back in the red may have triggered some of the late-session weakness on Friday. However, a supportive USDA Cattle-On-Feed report might provide some early carryover support this morning. July hogs closed 342 higher for the week last week. Iowa/Minnesota cash markets were down $1.81 on Friday to $82.98. Pork cutout values released after the close Friday came in at $81.48, down $1.20 from Thursday but up from $80.55 the previous week. Loins and hams were moderately lower. The CME Lean Hog Index as of May 16th came in at 80.81, up 93 cents from the previous session and up from 79.56 the week before. The estimated hog slaughter came in at 408,000 head Friday and 66,000 head for Saturday. This brought the total for last week to 2.116 million head, up from 2.089 million head the previous week and up from 2.031 million head a year ago.